How to design and visualize your business

model by drawing a Business Model Canvas

Stephanie Winterstein
TOPIC SELECTION

Topic:
How to design and visualize your business model by drawing a Business Model
Canvas

Goal of Instruction:
To explain how to build a business model based on a business idea and visualize it with
the help of Business Model Canvas.

Rationale:
The Business Model Canvas (BMC) is the tool of choice to visualize the business model
and a startup idea and to test if it makes business sense. Many experts think that the
business model can completely replace the outdated business plan. Developed by
Alexander Osterwalder and published in his book "Business Model Generation", the
Business Model Canvas has already reached more than 5 million users. The Business
Model Canvas has become an important element of the Lean Startup philosophy.

I myself would like to run my own business in the future and therefore I generated
many business ideas and came across the model. However, not every good idea will
end in a working and successful business model. The Business Model Canvas helps me
to structure and visualize my ideas ("What am I going to do") and to convert them into
a business model ("How do I make money with it") by bringing all essential elements
e.g. potential customers, key activities, costs, revenues and the value proposition into
a scalable system. Especially at the beginning of the foundation, when the ideas are
not yet mature, I can generate and compare many different variants and adapt them
flexibly.
The tool is less complex, easy to understand and tangible in usage, which is why I
think I can get the content across in 20 minutes. I will focus on the introduction of the
9 components and on giving an outlook on how to use the tool for visualizing the own
business idea. In my opinion it can be categorized as intellectual skill, because it
requires capabilities in entrepreneurial thinking and acting as well as in strategic and
economical planning.

Description / Background of Learner (who would need this instruction):

The course is designed for people, who already have a business idea and thinking of
starting their own business. I offer a general introduction to the 9 components of a
business model and explain how to use the canvas tool, which doesn’t require any
previous knowledge. But it does help to bring a basic understanding of
entrepreneurship.
TASK ANALYSIS

Goal of Instruction:
Enable the participant to convert his/her business idea into a visualized business
model by using a canvas tool.

Performance Based Assessment:

The first part is a theoretical introduction to business modeling with the help of a
canvas and its 9 components. The best way to assess the performance of the learners
is to test their knowledge by using a quiz within the eLearning course. The quiz will
require the learners to identify the correct explanations of the 9 components and the
differences between business model, idea and plan.
In the second part of the course the learner will be challenged to demonstrate their
acquired knowledge by ordering given examples to the correct boxes of the canvas like
a puzzle.
In the last part of the eLearning course the learner will draw his own canvas by
choosing a given example and filling the boxes himself. There is no right or wrong
answer. At the end the learner will submit the BMC and an experience report on his/
her successes and problems and discuss actively the results with the peer learners.

Tasks: Subtask (including skills and knowledge required for performance)

1. Task: Introduce the concept of a Business Model

a. Describe what is a business model and how to distinguish from business idea 

and business plan
b. Identify the 9 components of a Business Model Canvas

2. Task: Explain the 9 components of a business model and their relationship to each
other by using an example
a. Identify the customer-facing components, which are needed to make the 

business model work
1. Figure out the value proposition
2. Describe the customers
3. List the channels, how to get the product to the customer
4. Describe the customer acquisition and retention strategy
b. Identify the organizational components, which are needed to make the 

business model work
1. List the key resources and assets
2. Describe your key partners an suppliers
3. List all key activities, that need to be done to make the business 

model work
 c. Identify the financial components
1. Point out the strategy how to make money
2. Point out all the costs to operate the business model

3. Task: Process of Creating a Business Model Canvas

a. Chose from given examples of business ideas
b. Prepare the creation process
c. Prototype the own business model by using best practices

Questions to ask the SME

1. What is a business model and is it different to an idea and a business plan?
2. What are the 9 components of a Business Model Canvas and what do they mean?
3. Can you give an example?
4. What are best practices by drawing a canvas?

TASKS, OBJECTIVES AND MEASUREMENTS

Objectives
1. At the end of this segment of the course, the learner should be able to explain the
basic characteristics of a business model being introduced with the Business Model
Canvas.
2. Given an example, the learner will be able to break down all customer-facing,
organizational and financial components, which are needed to make the business
model work.
3. At the end of the course, the learner should be able to generate his/her own
Business Model Canvas based on a business idea.

Measurements/Evaluation (one per objective)

1. Identify three characteristics of a business model.
2. Successfully assign sample phrases to the corresponding boxes of the BMC.
3. Submit the BMC with a short reflection on the creation process and contribute
actively to the discussion with the peer learners.